Nikkei ends at over 30-year high on hopes for expanded U.S. stimulus
29/12/2020 07:05
TOKYO, Dec 29 (Reuters) - Japan's Nikkei share average ended
at a more than three-decade high on Tuesday, as risk appetite
improved on hopes that a long-awaited U.S. pandemic relief
package would be expanded.
The benchmark Nikkei share average .N225 rose 1.63% to
27,292.37, its highest closing level since Aug. 16, 1990, while
also posting its biggest daily gain since mid-June.
The broader Topix .TOPX gained 1.74% to 1,819.18, its best
closing since October 2018.
"Investors who are buying stocks today are making new
positions for 2021," said Takashi Hiroki, chief strategist at
Monex Securities.
Overnight, major Wall Street indexes notched record highs as
optimism for an economic recovery increased following U.S.
President Donald Trump's signing of a $2.3 trillion pandemic aid
bill. .N
The U.S. House of Representatives voted on Monday to meet
Trump's demand for stimulus payments of $2,000 to qualified
Americans, sending the measure on to the Senate for a vote.
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Investors also re-recognised other catalysts from this
month, such as dovish monetary policies from central banks in
Japan, the U.S. and Europe, as well as a string of positive
vaccine news, said Kiyoshi Ishigane, chief fund manager at
Mitsubishi UFJ Kokusai Asset Management.
"While the speed will not likely be as fast as the one in
the November rally, I think there is enough possibility that the
market will remain strong for the next one to two months," he
said.
All but two of the 33 sector sub-indexes on the Tokyo
exchange traded higher. Highly cyclical airlines .IAIRL.T and
land transport .IRAIL.T were among the top gainers on the main
bourse.
Among the top percentage gainers in Nikkei, Sumitomo
Dainippon Pharma Co Ltd 4506.T jumped 16.24%, followed by IHI
Corp 7013.T and Yokogawa Electric Corp 6841.T , up 6.17% and
5.11%, respectively.
Elsewhere, Nitori Holdings 9843.T rose 1.37% as the
furniture retailer completed its tender offer for Shimachu Co
8184.T . Shares of Shimachu lost 0.36%. urn:newsml:reuters.com:*:nL4N2J90CR
The Mothers Index .MTHR of start-up firm shares rose 2.6%,
hitting a one-week high.
(Reporting by Eimi Yamamitsu; Editing by Subhranshu Sahu and
Rashmi Aich)
((eimi.yamamitsu@thomsonreuters.com;))